BOLTON wine bar chain Yates Group is being bought by millionaire property tycoon Robert Tchenguiz in a é200m deal, the M.E.N can reveal.

Rumours that Mr Tchenguiz, owner of the Laurel Pub Company, was considering a bid began last week, but sources close to Yates say talks are at an advanced stage and the deal will be completed early next month.

The move, which will create the UK's biggest operator of high street bars, comes just nine months after Yates was taken private in a é160m management buyout backed by private equity house GI Partners.

Laurel, operator of the Hog's Head chain, had hoped to buy the chain last summer but was outbid by GI. The takeover is a shock move for management at Yates, but a source said: "Laurel put an offer to GI that was too good to refuse. It is a surprise that it has been sold so quickly, but that's the name of the game."

Yates chief executive Mark Jones, who since his appointment has boosted the once flagging chain with a turnaround strategy, is believed to be joining GI to look at future investments in the leisure sector.

The deal will mark a major increase in the value of Yates since it was bought last July.

GI is believed to have provided around é40m of funding for last year's deal, but it is not clear whether this includes the 20 per cent stake held by Yates management.

Nevertheless Mr Jones and his team will be in line for a substantial windfall following the sale. The merger will create a total of 320 high street outlets.